Commercial Space Planning 101: What to Know Before You Sign a Lease

Signing a commercial lease feels like progress. But here’s what most first-time tenants don’t realize: the lease is step one of about forty. The next thirty-nine are all about what you can actually do with the space. We’ve been called in after the signing more times than we can count. And we’ve had to tell people their ceiling’s too low, their electrical panel won’t support the layout, or the floor plate shape makes their plan impossible without doubling the budget. Here’s what to check before you sign.

How Much Space Do You Actually Need?

Most people guess. They take the current footprint, add 20%, done. That burns money.

Think function first, square meters second. For an office, count desks. Then add meeting rooms, storage, a pantry, reception, and circulation: hallways eat 20 to 25% of your total. Skip that in the math and you’ll run out of room fast. For retail, count display area, stockroom, counter, and customer flow. For a restaurant, add kitchen equipment, dishwashing, and server pathways. A cramped kitchen kills a restaurant. We’ve seen it.

Rough numbers: 8 to 10 sqm per person for a comfortable office. Clothing boutique, 40 to 60 sqm. Convenience store, 20 to 30. And check whether the lease charges on gross floor area (includes lobbies and hallways) or leasable area only. That distinction alone shifts your budget by 15%.

Look at the Bones, Not Just the Square Meters

The most dangerous lease is one where the space looks fine at a walkthrough but fights you on every design decision later. Here’s what we check before a client signs.

Ceiling height. The National Building Code (PD 1096) sets 2.7 meters as the minimum for habitable rooms. That’s the floor for offices. But lower than that and ductwork gets tight and the space feels cramped no matter what you do with lighting. For retail, the code minimum is the same, but 3 meters and up is the industry standard. It gives you vertical display and keeps the space from feeling like a box.

Column spacing. Wide spacing means flexible floor plans. Modern commercial buildings typically use 6 to 9 meter grids. Older buildings or residential conversions sometimes have columns every 4 to 5 meters, and those will dictate where your partitions go whether you like it or not. Ask for the structural plan before signing.

Natural light. A deep, dark space costs more to light and cool and feels worse to work in. In the Philippines, east and west-facing windows are the real problem. Low-angle morning and afternoon sun that’s hard to shade. An all-glass facade facing west is a cooling bill, not a feature.

Floor load capacity. Matters for server rooms, shelving, or kitchen equipment. Most office buildings handle 2.4 to 4.8 kPa (250 to 500 kg/sqm). A commercial kitchen might need more. The building admin has this number. Ask for it.

Building Systems That Make or Break Your Budget

Electrical. A typical office needs 25 to 40 VA per sqm. That covers workstations and basic lighting. A restaurant kitchen, server room, or retail display lighting pushes that number higher. Ask the landlord for allocated capacity per sqm. If it’s low, upgrading is possible but expensive. And it’s usually not the landlord’s problem.

HVAC. Does the building supply central air or are you installing your own? Central gives you infrastructure but limits zone control. Split-type or VRF systems give control but add cost. Check if the building’s AC hours match your business hours. Offices in mixed-use buildings sometimes lose cooling at 6 PM. Late-working team? Dealbreaker.

Plumbing. If you need a pantry, bathroom, or kitchen, you need supply and drainage lines where you want them. Moving plumbing across a concrete slab is doable but costly. For restaurants, ask about grease trap rules. Some buildings don’t allow food businesses at all.

Fire safety. Every commercial fit-out must comply with the Fire Code of the Philippines, RA 9514. Sprinklers, fire exits, rated doors and partitions. A compliant building saves you retrofit cost. If it isn’t, that cost is yours.

Zoning and Permits

Confirm two things before signing. First, your business type is allowed under the building’s zoning. A warehouse zoned for light industrial can’t become a restaurant just because the space looks right. Second, the certificate of occupancy covers your intended use. We’ve had clients find out during permit applications. By then they’d paid a deposit.

Also ask: who handles the building permit? Sometimes the tenant, sometimes the landlord, sometimes split. Get it in writing. A rejected permit mid-project kills your timeline and burns your deposit.

Fit-Out Costs and Timeline

Standard office fit-out: budget ₱15,000 to ₱35,000 per sqm. Bare-shell sits at the low end. Custom millwork, acoustic treatments, specialty lighting push it higher. Retail: a kiosk or boutique at ₱10,000 to ₱20,000/sqm. A full restaurant with kitchen exhaust and dining finishes can hit ₱40,000 to ₱60,000/sqm.

Timeline: a 100 to 300 sqm office realistically runs 8 to 12 weeks for design and permitting, then 8 to 14 weeks for construction. Smaller retail can compress to 10 to 12 weeks total if the building’s systems are already in place.

Watch the fit-out period. Most leases give 30 to 60 days rent-free for construction. That’s almost never enough for a full build-out. Negotiate for 90 days minimum if the space is a bare shell. If the landlord won’t budge, factor those rent months into your cost.

Bring an Architect in Before You Sign

This is the single smartest move in commercial space planning. Before any money changes hands, have an architect walk the space. It takes an hour. Most firms do it as a consultation at little to no cost.

We do this all the time. Sometimes the answer is “this space works, here’s what to negotiate.” Other times it’s “walk away.” Either way, you know before you’re committed. Finding out after the lease is signed, when the floor plan won’t fit or the electrical can’t support your layout, costs a lot more than that hour.

If you’re planning a commercial fit-out in the Philippines, we’d rather talk now than after you’ve signed. Browse our portfolio or get in touch and we’ll tell you straight whether that space is a good deal or a headache.

Sources and Further Reading

• National Building Code of the Philippines (PD 1096): ceiling heights and structural requirements
• NSCP 2015, Table 205-1: live load requirements (2.4 kPa office, 4.8 kPa retail)
• Philippine Electrical Code, Table 2.20.2.3: office general lighting load of 28 VA/sqm
• Fire Code of the Philippines (RA 9514): full text
• CBRE Philippines Fit-Out Guide 2025: office fit-out cost benchmarks
• UODC Architects: real-world office fit-out timelines in the Philippines
• Respicio and Co.: commercial lease renovation responsibilities
• Fulgar Architects: tropical commercial architecture and facade orientation